How many of us have forgotten to pick up the card from the ATM slot after transaction? How many of us have forgotten to carry the card itself when it was most needed? Ok, lets cut the chase, we all know the above issues. We also know what happens when your card gets sucked in the ATM machine for non-activity, and gives you a hard time retrieving it. In a recent move, Diebold has come up with an innovation in the ATM space, which may change how we withdraw cash from ATM’s. And eventually how we solve some of the above problems.

Earlier this week, Diebold Inc., announced that it is making a contactless card reader available at all financial institutions globally. The solution claims to leverage NFC technology at the ATM, enabling the user interface to read smartphones with NFC and contactless media such as payment cards, tags, stickers etc.

Existing Opteva ATMs can be upgraded with the Diebold contactless card reader. It works with both dip and motorized magnetic stripe card readers to enable an alternate method for transactions. The contactless card contains a chip or processor which can communicate and exchange information with a reader. When the card is placed next to the contactless reader, it is detected through NFC technology.

What differentiates the Diebold contactless card from Stripe cards is that their contactless reader makes it unnecessary for the card to be swiped or inserted into a terminal.This also provides convenience, security and enhanced speed for consumers at the self service outlet according to Diebold.

Some of Diebold’s recent innovations include:

Concierge video services: brings video technology to the ATM and offers face-to-face video with call center representatives right at the terminal.

Cloud-based services: the ATM uses the cloud for services integration and delivery, demonstrating streamlined and simplified management of software from various providers.

BezelSentry Service: Subscription based service that allows financial institutions to help prevent card skimming and stay one step ahead of criminal activity.

Back in August, 2013 Diebold had also partnered with Paydiant to launch a contactless card solution called Mobile Cash Access solution.

Some of the players in contactless card field include NCR and Korean-based Hyosung . NCR is a direct competitor in the ATM, Self-service and POS market. The company utilizes RFID (Radio Frequency Identification) readers that allow contactless payments using RFID key tags. NCR also enables consumers to initiate an ATM transaction on their mobile phones and complete the transaction at the ATM.

LTP View: Diebold’s latest offering could reduce transaction times, improve speed and elevate the overall consumer experience at ATMs. This is a great symbiotic relationship being developed between the old world and new world. Where ATMs meet mobile payments meet convenience.

In one of the recent moves Wintrust Bank in Illinois, BMO Harris Bank in Chicago and City National Bank in Los Angeles plan to roll out a contactless and cardless solution to withdraw cash from ATM. The service is set to be rolled out by the end of 2014. Considering the shift in trend from physical wallets to mobile wallets, it will be interesting to note if such a service (contactless and cardless) will be preferred over Diebold’s (contactless) service.

Vaseem Khan is a founding member and a primary author at MEDICI. He is a Payments enthusiast and an avid reader. He loves being involved on initiatives related to Technology, Startups & Payments. He has been associated with companies like Gallup as a Management Consultant and Oracle as an Account Manager.

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